46 States Settle Complaint Against SiriusXM Over Ad, Billing Practices

Settlement

Attorneys General from 46 states have reached a $3.8 million settlement with SIRIUSXM RADIO over alleged misleading advertising and billing practices.  The states sued the satellite company over widespread complaints that subscribers encountered difficulty in canceling contracts and were automatically renewed, sometimes at much higher rates, without notice or consent.  Consumers who had problems canceling service or geting refunds from JULY 28, 2008 to TODAY (12/8) will be eligible for restitution.

MARYLAND Attorney General DOUGLAS F. GANSLER said, “Consumers shouldn’t have to read the super-fine print or jump through hoops to understand and cancel their service contracts. Requiring SIRIUS to change its business practices means customers will be better informed about their rights and the terms of their agreement.”

The settlement will require SIRIUSXM to clearly disclose all terms and conditions at point of sale, not misrepresent available plans in advertising, give notice for automatic renewals for terms of more than six months, make cancellation easier, and end the practice of paying incentives to customer service representatives based solely on retention figures.

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